Club Med Owner Fosun Looks to Raise $548 Million in Hong Kong IPO

Crystal Tse and Jinshan Hong, Bloomberg

- Nov 29, 2018 9:00 am

Skift Take

Hong Kong’s IPO market is on a tear this year, and Fosun wants to grab a piece of that investor enthusiasm by spinning out its tourism group. It’s been three years since Fosun took over Club Med, and the turnaround plan seems to be on track.

— Tom Lowry

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Fosun Tourism Group, a unit of billionaire Guo Guangchang’s drugs-to-insurance conglomerate, plans to start taking investor orders Friday for a Hong Kong initial public offering of as much as $548 million.

The owner of luxury resort brand Club Med is offering 214.2 million shares at HK$15.60 to HK$20.00 apiece, according to a prospectus distributed at a media briefing Thursday. The company aims to price the deal Dec. 7 and begin trading Dec. 14, the prospectus shows.

The offering would add to the $33 billion of first-time share sales in Hong Kong this year, more than double the volume during the same period in 2017, data compiled by Bloomberg show. Babytree Group, also backed by Fosun International Ltd., raised $217 million in its IPO in the city this month. Its shares are trading about even with their offer price.

Units of Alibaba Group Holding Ltd., Shun Tak Holdings Ltd. and Suchuang Gas Corp. agreed to buy about $49 million of stock in the offering as cornerstone investors, the prospectus shows.

In addition to Club Med SAS, Fosun Tourism owns Atlantis Sanya, a luxury hotel development overlooking the South China Sea on Hainan island, where the government has started a push to promote tourism.